CNOOC in LNG terminal venture with Shenergy
    China National Offshore Oil Corp. (CNOOC) said it had launched a joint venture Dec. 31 to operate a liquefied natural gas (LNG) terminal in Shanghai that would form part of a network of LNG terminals it planned to build along the country's eastern coast.
    CNOOC Gas & Power Ltd., a unit of CNOOC, holds a 45 percent stake and Shanghai's Shenergy Group the remainder.
    The Shanghai terminal project will comprise two phases, and the terminal is expected to start operating in the first half of 2008, CNOOC said in a statement.
    With a total investment of 4.59 billion yuan (US$554.35 million), the first phase of the Shanghai terminal¡¯s construction will comprise building a terminal that will be capable of receiving three million metric tons of LNG annually. The terminal will comprise an LNG wharf, two 160,000-cubic-meter LNG storage tanks and an undersea gas pipeline.
    CNOOC didn't provide an estimate on total investment for the project or information on the second phase of construction.
    Construction of three other LNG terminals has already begun in the southern provinces of Guangdong and Fujian and eastern Zhejiang Province.
    In October last year, CNOOC reached tentative agreements with the provincial governments of northeastern Liaoning Province and eastern Jiangsu Province to build LNG terminals in the cities of Yingkou and Binhai respectively.
    The company is also planning to build an LNG terminal in the port city of Tianjin.
    If all of the projects go ahead, CNOOC will be able to establish a chain of LNG terminals along the coast, nurturing the LNG business as a new source of revenue.